Kansas is making a gamble in hiring Miles, but who were their better options? What other coach could Kansas have hired that would have us discussing him, right now? Why not take that gamble?
I'm not so quick to discount the possibility of these retired coaches (Miles and Mac Brown) coming back and making an impact in the short term while lining up their successor for the long time. Fwiw, Kansas wasn't as bad last year as they had been for the previous decade, so Miles even has something to work with. As head coach, he should be the trump card for recruiting and the face of the program, but little else. Hire excellent aggressive assistants and top-notch admin behind the scenes to keep everything organized (especially recruiting), and he can be successful, even at Kansas. They're not suddenly going to be competing for championships, but a winning record is a good goal for the next few years.
For those making light of Miles for not doing so well with all of that talent, don't forget that he was the guy who oversaw getting all of that talent. Again, if you're Kansas, why not take that chance?